Answer:
$2,500
Step-by-step explanation:
The amount the business pay in interest can be calculated using the sinple interest formula as shown:
Simple Interest = Principal × Rate × Time/100
Given Principal = $100,000 (Loan)
Rate = 10%
Time (in years) = 3months = 3/12 years
Substituting the parameters into the formula we will have;
SI = 100,000×10×3/12×100
SI = 1000×30/12
SI = 30,000/12
SI = $2,500
Therefore the business pays an interest of $2,500
